Avnet recognizes that our environmental, social and governance (ESG) performance helps to drive shareholder value and is important to many internal and external stakeholders. Oversight of Avnet’s ESG performance by the company’s leaders is a key component to ensure the company is on the right track when it comes to responsible business practices. We coordinate environmental and social efforts across our business to advance long-term operational and financial success.
Here is a Q&A with Avnet’s Director of ESG, Stacy Mendez, which provides an overview of Avnet’s oversight processes.
Electronics Era: What does the Avnet BOD oversee when it comes to ESG?
Avnet: The full Board of Directors oversees Avnet’s ESG program with a full review at least annually. The BOD assigns ESG oversight to board committees aligned with their respective areas of responsibility to ensure that Avnet’s ESG performance and risk management are monitored appropriately. In addition, the BOD reviews and approves Avnet’s Statement against Modern Slavery and Human Trafficking annually.
The Corporate Governance Committee of the BOD (CGC) has primary oversight of corporate governance, including corporate social responsibility and ESG. It monitors the effectiveness of our ESG program and initiatives, offers advice and counsel to management, and makes recommendations to the Board. The Audit Committee oversees Avnet’s Ethics and Compliance Program, enterprise risk management and resiliency program, and cybersecurity. The Compensation and Leadership Development Committee oversees our compensation structure, as well as programs related to talent, leadership and culture, and DEI.
Electronics Era: What does the Avnet Management Team oversee when it comes to ESG?
Avnet: With oversight from the Board and the CGC, the Avnet Leadership Team (ALT) approves and provides the resources to execute our ESG strategies and objectives. The ALT established an ESG Governance Council composed of the chief financial officer (CFO), chief people officer, general counsel, and regional business presidents, all of whom report directly to the chief executive officer (CEO). At least biannually, the ALT reports on the ESG program during board committee meetings. The ESG Governance Council assists the ALT in setting and implementing ESG- and sustainability-related strategies, monitoring sustainability topics, implementing sustainability policies, and reviewing and approving the corporate sustainability report and other disclosures.
ESG Governance Council responsibilities include:
- Responding to Avnet’s stakeholder preferences
- Minimizing obstacles for collecting data and completing required reports and disclosures
- Approving recommended strategy, goals, and key performance indicators (KPIs)
- Overseeing initiatives to meet goals
- Monitoring internal and external trends for ESG improvement
The ESG Governance Council meets quarterly to oversee and support the ESG working team, a cross-functional group composed of global representatives from different levels of management that meets monthly to create and implement of our ESG strategy and goals.
Electronics Era: What is Avnet’s oversight of environmental strategies and climate change risks
Avnet: The CGC reviews ESG (including environmental strategies and climate-change risks) during quarterly meetings, with an ESG update to the full Board once per year.
CGC oversight of ESG includes a review of Avnet’s Environmental Commitment strategic pillar, including strategy, performance, and roadmap. Avnet’s environmental strategy is focused on emissions reduction, renewable energy expansion and waste reduction to reduce negative climate impact.
At Avnet’s management level, the ESG Governance Council oversees Avnet’s readiness for potential changes to climate-related regulations globally. To prepare for regulatory changes, the ESG Governance Council oversees the ESG roadmap and new systems implementation for environmental data collection and reporting, aiming to improve reporting efficiency, accuracy, scope, and transparency, as well as prepare for any required third-party assurance. The ESG Governance Council also approves energy, emissions, waste, and water reduction goals, and associated reporting.
The climate-related responsibilities of ESG Governance Council include:
- Implementing a climate transition plan
- Integrating climate-related issues into the ESG strategy
- Setting climate-related corporate targets
- Monitoring progress against climate-related corporate targets
For more information on Avnet’s sustainability program visit our website or see our latest sustainability report.
